Scaling Ambition: Turning Policy into Practice for NSW Climate Tech

NSW’s Innovation & Productivity Council (IPC) has released a timely blueprint on how to move from supporting startups to enabling true scale ups. In the "Scaling Ambition: Enabling the next generation of globally competitive scaleups" report, IPC identifies three levers — fund-the-funder, capability development, and structured internationalisation — as practical tools to help more hardware based startups to scaleup and reach global relevance.

Climate tech is the test case: hardware-heavy, capital-intensive and dependent on global supply chains. According to Endeavor Insight, only 23 per cent of climate tech ventures reach scale, yet those few generate 80 per cent of jobs and impact.

Scaling isn’t more growth — it’s a time-limited window of exponential change.

1. Fund-the-Funder: Building the Growth-Stage Capital Stack

NSW has made headway with programs like the Net Zero Industry and Innovation Program, but most funding still targets early commercialisation.

The IPC urges one step further — back the fund managers who can deploy patient, later-stage capital.

“Anchor capable fund managers and crowd-in private capital, not just grant it.”

The CEFC and Virescent Ventures already show how this works in energy.

Victoria’s Breakthrough Victoria and Queensland’s Venture Capital Development Fund demonstrate similar co-investment models.

Internationally, the EU’s Tech Champions Initiative and the UK’s British Patient Capital both use fund-of-funds structures to keep scaleups local while attracting global money.

2. Capability Development: Building Leadership at Scale

"Scaling is a team sport. Founders need to shift from product builders to organisational leader."

The UK ScaleUp Institute continues to identify the same gaps: leadership, sales, finance, and operational depth — along with the need for peer networks and mentors.

That insight underpins the IPC’s call for structured capability pathways.

EnergyLab’s Sydney Scaleup Program is a solid foundation; pair it with executive scholarships or operators-in-residence and the impact multiplies. Germany’s NEXT MANNHEIM combines scale coaching with European market access, while New York’s Scale for ClimateTech links design-for-manufacture, supply chain readiness and expert talent matching.

NSW could watch and learn from Queensland’s recent investment into scale up programs. A “two-lane” model: broad capability support for startups transitioning to scale, and deeper, 12- to 18-month wrap-around programs for 20 high-potential scaleups. Think fractional COOs/CFOs, stage relevent coaches, and sector-specific mentors and structured international market expansion plans and introductions. For manufacturing and climate hardware, the Scaling Up 20,000 Scaleups format used by local Governments in the UK and other international markets— a year-long blend of learning, coaching and peer boards — offers a ready-made chassis to localise.

3. Structured Internationalisation: Making Global a System

“Go global shouldn’t mean go it alone.”

The IPC’s third lever focuses on repeatable pathways into priority markets — the US, UK, EU and Asia-Pacific.

Firms like SunDrive, Green Gravity and Loam Bio already show what’s possible with international pilots and offtake deals.

A NSW Climate Tech Landing Pad, modelled on Singapore’s Global Innovation Alliance, could help the next wave secure customers and partners offshore.

Capital, Capability, Customers

Together these levers form a simple architecture for scaling:

• Capital — fund-the-funder to anchor patient growth money.

• Capability — professionalise founders and leadership teams.

• Customers — structured internationalisation to open markets.

For NSW, this means connecting with existing ecosystem builders, scale up experts and programs — Greenhouse Climate Tech Hub, Net Zero Manufacturing, and Trade & Investment NSW, Scaling Up — under one clear scaling strategy and framework.

The goal isn’t more small startups; it’s helping the next 10, 30, 50, 100 climate tech firms become globally competitive through facilitating more scaleup stage capital, capability and customers. Helping them to internationalise and attain economies of scale faster, and realise productivity, capital and climate returns.

Sources: NSW IPC Scaling Ambition (2025); Endeavor Insight Scaling Climate Tech (2022); CEFC; ScaleUp Institute UK; NEXT MANNHEIM; EnterpriseSG; ARPA-E SCALEUP.